So...I've just made the 'mistake' of putting a small deposit down on a 265. It's only costing $500, and appears to be in quite good shape. The only problems I noticed (apart from the apparently horrible PRV engine) were:

1)The brakes felt spongy, until almost full throw of the brake pedal. (However, the car stopped well)

2)The foot-well carpet for the rear seats had been replaced with a non-matching colour (Big deal, I know!)

3)The AC belt was disconnected. I presume the AC compressor had seized, or stopped functioning.

4)The front seats were ratty.

The body seemed to be in excellent condition, no apparent rust anywhere. The ride was reasonably good, if a little too soft/boatish. The engine and transmission (3spd auto) had also been recently been rebuilt, according to the dealer. They took it as a trade-in on an 850, probably presuming to flip it quite quickly.

I've got a potential 88-740 redblock and trans to drop in, if (when?) the engine dies, but the engine doesn't have any noticeable problems (to a novice, like me), and it idles well, if a bit high.

What should I do with it? Get it roadworthied & registered, and drive it around (while I do maintenance to my 740tic). Or just stick it in the drive way and part it out? I'd rather not do the second, since it seems like such a nice car, however recent reading seems to suggest that the engine is more trouble than it's worth.

Does anyone have experience with the Peugeot or Renault versions of this engine? Reading would also suggest that they managed to iron out the oiling problems that the engine faces, and so could be likely places to look for upgrades/modifications.

Sorry for the long post, but I felt some background to my questions was required.

Thanks, Mak